DeZwarteRidder schreef op 1 november 2024 08:48:
Other: TFG Asset Management has historically described its ownership level in Equitix as 75%, reflecting the
original capital table as at the acquisition date in 2015, along with further equity grants to management in the
interim. Shares held by Equitix management are subject to forfeiture in certain circumstances upon their
departure or are otherwise converted into an entitlement to reduced “tail” payments as distributions are made
over a specified period following the employee’s departure. On a distribution basis, TFG Asset Management has
continued to receive approximately 75% of the dividends from the business, with management and former
management members on a “tail” receiving the remainder.
In the event of a sale of the business, the entitlements of former management members to “tail” payments would
be accelerated based on a formula and TFG Asset Management and the acting management team shareholders
would receive the purchase price net of these accelerated amounts. As such, on a capital basis, TFG Asset
Management’s calculated ownership of the Equitix business on a sale is different from the distribution basis, and
is currently 81.48% as at 30 September 2024.
Although the capital basis percentage owned has historically fluctuated between 75.80% and 81.48%, given the
current percentage of “tail” payments owned by former employees, more recently it has been towards the higher
end of this range – which is generally consistent with expected ownership levels. As such, it is considered
appropriate to utilise this percentage in determining the fair value of TFG Asset Management’s stake in Equitix
as at the current reporting date. Going forward, TFG Asset Management will reference at each quarter end its
ownership level in the business to the percentage of Equitix’s shares that it holds net of any accelerated “tail”
payments.
Monthly Factsheet | 30 September 2024
Tetragon Financial Group Limited